My idea is some non profit gets setup to manage a system where someone announces their mortgage and then they can have friends, family and second and third degree friends and families finance your loan.
Let’s say someone buys a $250k house. Each person puts in $100 and then they get a receipt showing they are owed $200 against their 1/2500th share of the mortgage. Repayments are paid the $200 in return in a random time frame of between the first month to the last month 30 years later. Repayment is completely randomized, meaning you could get your money back really soon… Or a really long time from then.
There are a lot of other ways you could build on this idea.
Former mortgage broker here. This is basically a credit union, or a private lender.
Now I’ll explain why those exist, but your idea doesn’t exist.
Every year that $200 loses 2.2% of it’s value. So you have to charge interest or else people would be signing up to lose money (buying power).
But that creates a new problem, who gets paid when?
Assuming 5.5% interest (low end of rates right now) and a 25 year amortization, the people who got paid out at year 1 would receive $207 while the people paid out at year 25 would get $788(~$450 of buying power though).
Than there’s the aspect of insurance. Your mandatory mortgage insurance covers the bank, not you. So now you need to find an insurer that can work with up to 2500 beneficiaries.
Or how bout when the bank forecloses for non payment?
It gets messy really fast and I’m just scratching the surface.
I think you may have jumped the shark with the “loses 2.2% of its value” comment. I feel like most of the world doesn’t understand inflation / the difference of real vs nominal dollars.
I tried explaining it to someone once and they kept just saying, “but the money in my bank account is real”.